Old-age and survivors’ insurance (also known as the OASI state pension or AHV-Rente) is the first pillar of the Swiss pension system and is designed to provide a basic pension benefit to retirees. It is a mandatory pension scheme provided by the government that all residents of Switzerland must pay into from the age of 17 until retirement age, making it comparable to a state pension system in other countries around the world.
Who pays into the pillar 1 old age and survivors' insurance (OASI) system in Switzerland?
The OASI pension system in Switzerland is mandatory for all workers above the age of 17. That means you are obliged to contribute if you are:
- Working for a company as an employee
- Self-employed as a freelancer or business owner
- Unemployed or searching for a job
OASI/AHV pension contributions
Contributions to the Swiss OASI pension scheme vary according to your employment status.
People who are employed by a company must contribute 8,7 percent of their annual salary. Your employer contributes an additional 8,7 percent. Freelancers must pay around 8 to 9 percent of their annual income into the OASI scheme. If you are looking for a job in Switzerland, you must pay 503 Swiss francs into the scheme each year.
Unlike with second-pillar occupational pensions and private pensions, you cannot choose to pay more into an OASI scheme.
Contributions to the first pillar are tax-deductible when filing your tax return.
How are OASI pensions calculated?
OASI pensions are calculated according to a few different factors:
- How long a person has paid into the system
- How much they earned when they were employed
- Whether they took out a family allowance
- Their marital status
How your salary affects your first pillar pension
To calculate a first-pillar pension, authorities look at your average income over the time you contributed to the Swiss pension system (i.e. the period during which you were employed in Switzerland).
If you have missed contributions - by working abroad, for instance - your pension entitlement will be reduced. The government estimates that a retiree’s OASI pension is reduced by 2,3 percent for each year they do not contribute to social security in Switzerland.
For married couples and those in registered partnerships, average incomes are combined together when calculating OASI payments.
Impact of family allowance on Swiss pension
Time taken out from work to raise a family can, however, be used to calculate your pension entitlement. If you take out a family allowance in Switzerland, or any other form of parental credit, during your working life, the income you receive is added to your average salary income when calculating OASI payments.
What is the maximum and minimum first pillar pension?
As of 2025, the minimum first pillar pension for an individual in Switzerland is 1.260 Swiss francs per month. Pensions are capped at a maximum of 2.520 francs per month. This is the maximum amount that a retiree can receive, even if their average income technically entitles them to a higher pension.
For those who are married or in a registered partnership, pensions are capped at 150 percent of the maximum single OASI pension, totalling 3.780 francs a month. Married or partnership couples must always claim a joint pension.
Applying for a Swiss first pillar pension
Once you reach statutory retirement age (currently 65 years for men and 64 years for women), you can start to draw your Swiss first pillar pension.
To apply for a Swiss first pillar pension, employed, self-employed and unemployed people need to submit an application to the cantonal or federal compensation office that was receiving their contributions before they retired. If you are not sure where to apply, your employer should be able to provide the relevant address.
If your spouse has already applied for and is receiving an OASI pension, you must apply for yours at the cantonal compensation office that is issuing the benefit.
If you have not paid any contributions, it is best to contact the compensation office in the canton where you are resident. A full list of offices can be found here.
Early or late retirement under the AHV pension scheme in Switzerland
It is possible to start to draw your AHV pension either before or after statutory retirement age (currently 65 years for men and 64 years for women - although the retirement age for women will be gradually increased to 65 between 2024 and 2028). Withdrawing your AHV pension earlier or later has an impact on your overall benefit.
Early withdrawal of OASI pensions in Switzerland
You are allowed to withdraw your OASI pension up to two years early.
Early retirees can withdraw between 20 and 80 percent of their monthly pension payments during this time, and they will continue contributing to Swiss social security until they reach the official retirement age.
However, if you choose to retire early, your pension payments will be reduced permanently. OASI pensions taken a year early are reduced by 6,8 percent, while those taken two years early are reduced by 13,6 percent.
OASI payments if working beyond the retirement age
It is also possible to defer all or part of your OASI pension for up to five years after the statutory retirement age. During this time, deferred retirees are still expected to pay into the Swiss social security system.
If you wish to retire later, you must inform your employer as soon as you receive your first payslip after reaching retirement age. You then have to register with the cantonal compensation office within a year in order to defer the pension.
Those who do defer their pension will be entitled to higher benefits once they retire. However, payments are still subject to the maximum pension rules outlined above.
Who inherits my OASI pension in Switzerland?
A first pillar pension (OASI) cannot be inherited, but dependents of a claimant who has passed away are entitled to a “survivor pension”. This equates to the benefits of the claimant’s first pillar pension and will last until the dependent reaches maturity (18 years old).
Drawing a Swiss OASI pension abroad
If you are a Swiss, EU or EFTA citizen, you can still contribute to an OASI pension outside of Switzerland, so long as you have been previously contributing to that pension for more than five years and you remain a resident of an EU or EFTA member state or live in a nation that has a social security treaty with Switzerland. If this is the case, you can claim a monthly pension benefit upon retirement.
If you move outside of the EU, EFTA or treaty nations, you must cash out your pension. This can be done by applying for a refund at the Swiss Compensation Fund or SAK.